Wednesday, April 04, 2012 Stock Market Commentary:
Stocks and other risk assets fell on Wednesday after fresh EU debt/recession fears re-emerged. In Q1, the Nasdaq composite surged nearly 19% which was its strongest quarter since 1991! The benchmark S&P 500 jumped nearly 12% or its best quarter sine 1998! Meanwhile, the Dow Jones Industrial Average rose 8%. From our point of view, the bulls remain in control of this market as long as the benchmark S&P 500 stays above its 50 DMA line.
EU Debt and Recession Woes Hurt Stocks:
Risk assets fell on Wednesday after investors digested a slew of economic data. Japan’s Nikkei experienced its largest single day decline in 5-months and gold fell by over 50pts. The European Central Bank (ECB) held rates steady and did not allude to further easing which echoed the Fed’s minutes released on Tuesday. Elsewhere, investors were also concerned that Spain’s debt auction was a little shy of estimates. Spain sold 2.6 billion euros of government bonds which was near the lower end of its target rate and yields rose compared to prior levels. This sparked fresh concern regarding other EU country’s and their debt woes. The news in the U.S. barely missed estimates. ADP, the country’s largest private payrolls report, said U.S. employers added 209,000 new jobs last month which was just shy of the Street’s 217,000 estimate. Separately, the ISM service index came in at 56 which was just below the Street’s estimate of 57.
Host Of The #SmartMoneyCircle Podcast, Founder and CEO of 50 Park Investments. Adam provides weekly market updates to ChartYourTrade.com readers. He is a FORBES Contributor and is a frequent guest on all the major financial media outlets.
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Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.
Stocks Fall On Central Bank, EU Debt, & Recession Woes
Wednesday, April 04, 2012
Stock Market Commentary:
Stocks and other risk assets fell on Wednesday after fresh EU debt/recession fears re-emerged. In Q1, the Nasdaq composite surged nearly 19% which was its strongest quarter since 1991! The benchmark S&P 500 jumped nearly 12% or its best quarter sine 1998! Meanwhile, the Dow Jones Industrial Average rose 8%. From our point of view, the bulls remain in control of this market as long as the benchmark S&P 500 stays above its 50 DMA line.
EU Debt and Recession Woes Hurt Stocks:
Risk assets fell on Wednesday after investors digested a slew of economic data. Japan’s Nikkei experienced its largest single day decline in 5-months and gold fell by over 50pts. The European Central Bank (ECB) held rates steady and did not allude to further easing which echoed the Fed’s minutes released on Tuesday. Elsewhere, investors were also concerned that Spain’s debt auction was a little shy of estimates. Spain sold 2.6 billion euros of government bonds which was near the lower end of its target rate and yields rose compared to prior levels. This sparked fresh concern regarding other EU country’s and their debt woes. The news in the U.S. barely missed estimates. ADP, the country’s largest private payrolls report, said U.S. employers added 209,000 new jobs last month which was just shy of the Street’s 217,000 estimate. Separately, the ISM service index came in at 56 which was just below the Street’s estimate of 57.
Market Outlook- Confirmed Rally
Risk assets (mainly stocks and a slew of commodities) are pulling back again which is considered normal after such a strong move. The key going forward is to gauge the “health” of the pullback to see if it is just another mild pullback within a broader uptrend, or the beginning of something more serious. As always, keep your losses small and never argue with the tape. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
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Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.
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